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Backup Withholding

2022 – 06/24 Businesses take note: You may be required to withhold 24% of certain payments to individuals if they don’t provide you with their legal names and taxpayer identification numbers (TINs) or the IRS notifies you that a payee’s TIN doesn’t match its records. Types of payments subject to backup withholding include interest, dividends, rents, profits, commissions, gambling winnings and taxable grants, as well as broker, barter exchange and royalty payments. However, backup withholding doesn’t apply to compensation reported on Forms W-2. For a comprehensive list of payments subject to backup withholding and more rules see IRS Publication 1281: https://bit.ly/2pXXv4G

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